omniture

Shanshui Cement Announces 2013 Annual Results

China Shanshui Cement Group Limited
2014-03-24 13:19 3032

Revenue Reaches RMB16,535 million

Profit Attributable to Equity Shareholders of the Company is RMB1,017 million

Consolidate in Core Markets   Increase Sales Volume

Reinforce Basic Management   Optimize Industrial Layout

HONG KONG, March 24, 2014 /PRNewswire/ --

Financial Highlights (Audited)

For the 12 Months ended 31 December 2013   (RMB Million) 
Revenue 16,535
Gross Profit 3,829
Profit from Operations 2,557
Net Profit for the Year 1,075
Profit Attributable to Equity Shareholders of the Company 1,017
Basic Earnings per Share (RMB) 0.36
Proposed Dividend per Share (HKD) 0.092


China Shanshui Cement Group Limited ("Shanshui Cement" or the "Group"; HKEx: 00691), the largest cement enterprise in Shandong and Liaoning Provinces in China, announced its audited annual results for the twelve months ended 31 December 2013, prepared in accordance with International Financial Reporting Standards.

During the reporting period, the Group's revenue reached RMB16,535 million. Gross profit was RMB3,829 million. Profit from operations was RMB2,557 million. Profit attributable to equity shareholders of the Company was RMB1,017 million. Basic earnings per share reached RMB0.36. The Board recommended the payment of a final dividend of HKD0.092 per share for the year ended 31 December 2013.

Mr. Zhang Bin, Chairman and General Manager of Shanshui Cement, said, "In 2013, the cement price in Shandong Region was lower than that of 2012, while the cement price in Northeast Region was fluctuating at high levels. As a result, the Group's cement price declined and affected overall profitability. However, the Group speeded up the development of its core cement business while accelerating vertical expansion on the industrial product chain, improving, refining fundamental internal management and enhancing the quality of production, operation and keeping sustainable profitability."

During the Reporting Period, the sales volume of cement of the Group increased year-on-year by 11.7% to 53.42 million tonnes, the sales volume of commercial clinker increased by 2.1% to 9.22 million tonnes, and the sales volume of concrete rose 72.4% to 2.86 million cubic meters. Sales volume of high grade cement was 35.54 million tonnes, representing a year-on-year increase of 20.5%, and sales volume of low grade cement was 17.88 million tonnes, representing a year-on-year decrease of 2.4%.

In 2013, the cement average unit selling price of our operating companies in Shandong Region was RMB243.9 per tonne, representing a year-on-year decrease of 9.1%, that in Northeast Region was RMB270.3 per tonne, representing a year-on-year decline of 11.0%, that in Shanxi Region was RMB218.9 per tonne, representing a year-on-year decrease of 8.8%, and that in Xinjiang Region was RMB226.8 per tonne, representing a year-on-year increase of 13.4%. Our operating companies in Shandong Region recorded sales revenue of RMB10,853 million, accounting for 65.6% of the Group's total sales revenue. Our operating companies in Northeast Region reported sales revenue of RMB4,554 million, accounting for 27.5% of the Group's total sales revenue. The commencement of operations for operating companies in Shanxi and Xinjiang will make more contributions to the Group's sales revenue.

During the Reporting Period, the Group added new cement production capacity of 4.56 million tonnes and new clinker production capacity (including those under trial operation) of 6.40 million tonnes. As at the end of the Reporting Period, all suitable clinker production lines had been equipped with residual heat generation facilities, and the total installed capacity amounted to 232.0 MW. In addition, as at the end of the Reporting Period, the total installed capacity of the Group's commercial concrete production lines amounted to 16.20 million m³. Furthermore, a number of clinker production lines and ancillary cement grinding production lines are currently under construction. With more new projects commencing operations, the Group will further strengthen its control over and stand out in the cement markets in Shandong, Liaoning, Shanxi provinces, eastern Inner Mongolia and Kashi region of Xinjiang.

The Group continued to improve its cost control. During the period, the proportion of raw materials costs to revenue was 25.5%, an increase of 2.0 percentage points over 2012. The Group's average unit purchase price of coal in 2013 decreased by 11.8% to RMB573.9/tonne compared with 2012. The proportion of coal costs to revenue was 20.1%, a decrease of 1.7 percentage points compared with 2012. Output of residual heat power generation was 1,105 million KWH in 2013, thus reducing the cost of clinker by RMB453 million.

Mr. Zhang concluded, "Looking ahead, regional market layout will become more prominent, the comprehensive advantages attained by large enterprises will become more obvious, and corporate profitability will increasingly depend on market domination and internal control management of the enterprise itself. The Group will adhere to its work guideline of 'standardization, centralization, promotion and development'. The Group will further consolidate in core markets to stabilize price and increase sales volume. We will also reinforce basic management, consider the overall situation and make breakthroughs in key areas. Meanwhile, the Group will optimize industrial layout through scientific development, transformation and upgrade. Last but not least, the Group will implement human resources strategies, and optimize structure and enhance skills, with an aim to strive for fruitful returns to our investors for their continued trust and support."

Source: China Shanshui Cement Group Limited
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